Update on Accounting firm’s accessorial liability

After being prosecuted at the initiative of the Fair Work
Ombudsman last year, Ezy Accounting 123 were fined $53,880 when the
Federal Court determined the firm had facilitated underpayments to
several employees of a client. Ezy Accounting 123 provided payroll
services and processed wages for a client, despite knowing the
rates workers were being paid were below lawful Award minimums.

Ezy Accounting 123 appealed that decision, arguing there was no
basis for the original finding that it had contravened the Fair
Work Act. However, a full bench of the Federal Court disagreed with
such a claim and found that the principal of the accounting firm
had enough knowledge of the relevant Award, including that it
required the payment of a base rate and penalty rates. Further,
this was exacerbated by 'unreliable' witness evidence given by the
principal at the original hearing.

The Court upheld the original decision, finding that the outcome
was unsurprising given the acceptance by the accounting firm that
the amounts paid to workers were less than the base rate of pay
which lead to inevitable underpayments. The only concession the
appellant received was a reduction in the overall penalty to
$51,330 after the Court found the original decision did not provide
adequate clarity as to the reason for the contraventions in
relation to rest and meal breaks.